Apple will store China's iCloud keys on local servers

According to Apple, this was the best balance.The company fought to keep iCloud data in the US, but was "ultimately unsuccessful," it said in a statement.This at least ensures that they have a good user experience, and might actually be more secure than steering users to alternatives.

Apple said it still has control over the encryption keys and is not giving China special access.However, that does not allay concerns that China will now have greater power to spy on iPhone-toting residents.Police in the country can both issue and execute warrants without the oversight of a court, and iCloud accounts are not as secure as iPhones and iPads -- it is possible to access the information contained in an iCloud account if Apple gets a legal order.

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Neither of these phones are confirmed or officially announced yet.
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